How to Calculate Landed Cost for International Purchases
A low ex-factory or FOB price can become expensive after logistics and import costs. Compare suppliers on the cost of getting usable goods to the required destination.
Cost components
- Product value and packaging.
- Origin handling and freight.
- Insurance where applicable.
- Import duty, taxes and customs fees.
- Destination handling, delivery and inspection.
- Bank or payment fees and currency conversion.
Use the correct basis
- Confirm the Incoterm so costs are not counted twice or omitted.
- Use the tariff classification and destination rules appropriate to the product.
- Use dated exchange-rate assumptions.
Compare scenarios
- Compare suppliers using the same destination and assumptions.
- Run sensitivity for freight or exchange-rate changes on high-value orders.
Frequently asked questions
Can TradesFolks calculate customs duty for every country?
A marketplace can provide tools or references, but final duties depend on classification, origin, destination law and customs assessment.
Why is landed cost different from invoice price?
The invoice can exclude freight, duties, taxes and other costs required to bring goods to destination.
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